President Donald Trump moved to cool tensions with Beijing after threatening to impose 100% tariffs on Chinese imports last week. The statement marked a more measured tone following increased volatility that had shaken global markets, including cryptocurrency.
In an X post, Trump reassured the public that the U.S. intends to support, not harm, China. “Don’t worry about China, it will all be fine!” he wrote, adding that President Xi Jinping was “highly respected” and that both leaders shared a desire to avoid an economic downturn.
Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT
(TS: 12 Oct 12:43 ET)…
— Trump Truth Social Posts On X (@TrumpTruthOnX) October 12, 2025
The remarks came shortly after China’s Commerce Ministry issued a warning against what it called “threats” from Washington. The ministry stated that Beijing would “resolutely take corresponding measures” if the U.S. proceeded with the tariff plan. It noted that China did not seek a tariff war but was prepared to respond if necessary. The ministry also urged the U.S. to settle disputes through dialogue, saying repeated tariff threats were “not the correct way to get along with China.”
Trump’s proposed tariff would raise the current average levy on Chinese imports from 55% to 100%, increasing trade pressure between the two economies. The move followed China’s announcement of export restrictions on rare earth minerals, a crucial component in U.S. manufacturing and technology production.
Crypto Prices Rebound After Sell-Off Triggered by Tariff Shock
Following Trump’s initial announcement of a potential tariff increment on Chinese goods on October 10, the crypto market reacted with Bitcoin dropping to $104,000, while Ethereum declined to $3,460. Additionally, this sudden collapse led to the wipeout of over $19 billion leveraged positions in one day.
Equity markets and commodities also reacted, with investors rushing toward cash and short-term bonds in response to the uncertainty. Analysts described the sell-off as one of the most aggressive liquidations in recent months.
However, with Trump softening his stance, both traditional and digital markets began to stabilize. According to CoinMarketCap data, Bitcoin has rallied 3% over the last 24 hours, with one BTC currently trading at $115,448. Ethereum also staged a significant rebound, climbing above the $4,000 mark. As of the time of writing, ETH has spiked 9% over the past day to $4,150 per token.
Despite the market recovery, market observers have been suggesting that the recent crash was a deliberate action. Notably, prominent legal expert Bill Morgan commented that “the market didn’t crash—it was crashed,” implying that the sell-off was caused was not organic but orchestrated.
Evans Kelvin
Brenda Kanana
